Viridor has appointed a civils contractor for its £10m anaerobic digestion plant in Somerset.
The waste firm awarded Cardiff-based Encon Construction the deal on the combined heat and power facility near Bridgwater.
The plant will treat 30,000 tonnes of food waste a year and generate enough electricity to supply 1,700 homes.
Viridor regional manager for South Wales Patrick Murray said: “We are looking forward to this new partnership to deliver this much needed facility for Somerset that will divert even more waste from landfill and increase recycling rates.”
Work on the scheme is due to begin in mid-April, with the plant operational in the late summer of 2013.